Kiewit-led consortium awarded "$3.9bn" Canadian road PPP

The government of Alberta has selected a consortium for its public–private partnership project (PPP) to build the southwest section of the Calgary Ring Road in the Canadian province of Alberta.

The Mountain View Partners team is led by US contractor Kiewit on the construction side, and by French PPP financier Meridiam Infrastructure North America.

According to InfraPPP, the road will be maintained for 30 years by a private company called Alberta Highway Services.

The final price tag of the ring road project is not known yet. Mountain View Partners was selected as the preferred bidder on 22 June. According to Alberta’s transport ministry, they have until 13 September to execute the final Design/Finance/Build/Operate (DFBO) Agreement with government, after which the government will release the agreement and the contract value.

In March 2014 Alberta’s then finance minister Doug Horner told local newspaper The Calgary Sun that the southwest ring road would cost in the region of CAN$5bn (US$3.9bn).

However, in its Spring 2016 budget the province’s government allocated much less – CAN$2.9 billion – for ring road projects in both Calgary and Edmonton, reports CBC.

Mountain View beat two other consortiums to the deal. These were Valley Link Partners, led by Vinci and Acciona, and Southwest Connect, made up of Hochtief, ACS, Aecon, Carillion and Flatiron.

The Southwest Calgary Ring Road will involve the design and construction of a 31km-long eight-lane freeway, with 14 Interchanges and 49 bridges, including three over the Elbow River and Fish Creek.

A video showing a computer simulation of a journey on the ring road can be seen here.

Alberta Transportation will provide between 50% and 70% of the capital cost of the project, and Mountain View will be required to raise the balance.

The entire ring road will be 100km-long when finished. The government of Alberta decided to split it into two separate projects to make it easier for consortiums to bid. The West Calgary Ring Road (pictured) will be based on an existing highway, with 5km of connector roads added.

The Government of Alberta and the City of Calgary began planning the ring road in the 1970s. During the 1980s and 1990s, the province purchased most of the lands needed. The northwest, northeast and southeast sections (known as the Stoney Train) are already in operation.

Image: The Calgary West highway (Alberta Transport Department)

Updated 20 July to clarify that the quoted US$3.9bn cost of the ring road was a 2014 estimate given by then Alberta finance minister Doug Horner.

Comments

The information is wrong.

The Southwest Calgary Ring Road was valued by Alberta Transportation in less than CAD$2,5Bn.

Alberta Transportation valued in less CAD$5.0Bn for two projects: the Southwest Calgary Ring road and for the West Calgary Ring road.

Money spend on Southwest ring road $5 Billion compared to the approx$2 billion spent on Northwest to south east section of the ring road is too much in current scenario and not worth compared to the traffic needs of SW section .This money they should spend on rest of the city roads to improve traffic flow by widening existing roads and interchanges ,adding more synchronized signal lights in main roads and more pedestrian crosswalks and lights , maintenance for winter conditions .They should find other alternative to improve traffic flow from 22 X to sarcee trailby connecting from 37 St via Anderson ,14 St glenmore by adding more interchanges in 14 St.